Technical analysis: key levels for gold and crude

Both gold and WTI have been falling back, as we see increasingly bearish signs coming into play, despite recent strength.

Gold testing crucial support level

Gold has dropped into the $1218 support level, with the price starting to turn higher.

The recent attempt to regain ground following a break below the crucial $1236 support level seems to have failed, with a drop below $1218 needed to confirm a likely breakdown from here. Until then, a rebound back into $1235 could be on the cards.

WTI wedge breakdown signals potential bearish shift

WTI has broken lower from a rising wedge formation, with the price falling towards the crucial $67.95 support level. A break below there would point towards a greater chance of a wider breakdown from here.

For now, we are seeing the price turn higher, with a strong chance that we are simply retracing the sell-off from $69.61. A break above that level would point towards a continuation of the recent uptrend. However, until that happens, there is a good chance this rebound will fall short. 

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